Jim Cramer's Mad Money Review

The banks and the homebuilders won't go down, Jim Cramer said on CNBC's "Stop Trading!" segment Tuesday.
"These companies continue to attract investors," he said. He pointed to Standard Pacific's (SPF) ability to raise capital today.
Cramer said this news is broadly bullish for the homebuilders, who may receive further capital infusions from hedge funds. "If you're emboldened, you'll come and buy another homebuilder," he said. He said National City (NCC) had shown similar ability to raise capital earlier this year.
Cramer: Housing Relief Is in Sight

On the other hand, Cramer expressed concern about Bank of America's (BAC) decision to buy a bigger stake in China Construction Bank. "I threw my hands up with this one," he said. He pointed out that Bank of America already has its hands full with its intended acquisition of Countrywide Financial (CFC). "I see a dividend I'm worried about," he said.
Cramer said $130 "seems to be this iron floor" in the PHLX Housing Sector Index, Cramer said. "March to April shows when you cut numbers people buy," Cramer said, indicating that there may be a bottom in this space.
Cramer ended the segment by pointing out that Apple (AAPL) and MasterCard (MA) are the "momentum plays of a lifetime."
Published By TheStreet.com

Labels: AAPL, CFC, Jim Cramer, MA, NCC, SPF, Stop Trading

Stick with agriculture and recession stocks, Jim Cramer said on CNBC's "Stop Trading!" segment Friday.
"Mosaic (MOS) is terrific. ... I think Agrium (AGU) is a catch-up ... to Mosaic," Cramer said. "You're going to do better with that than ... betting against Procter (PG)."
More broadly, Cramer believes the market is frantic as shorts try to cover their bets on the bond insurers. "Today's a big short-squeeze day. 'Let's short squeeze Ambac (ABK) and MBIA (MBI).'"
In the financial sector, Cramer expects more take-unders like Bank of America's (BAC) purchase of Countrywide (CFC). He foresees Washington Mutual (WMon the auction block, adding that CEO "Kerry Killinger is doing his best to do a bad job. ... Washington Mutual at $15 is like Countrywide at $8."
Cramer encouraged investors to play conservatively. "I would be partial to Coke (KO)," he said, adding that he was encouraged that commodity prices are down for the soft-drink company. Pepsi (PEP) is another good pick, he added.
Published By TheStreet.com

Labels: ABK, AGU, BAC, CFC, Jim Cramer, KO, MBI, MOS, PEP, PG, Stop Trading, WM

Bullish calls:
CVS Caremark (CVS): 'I think it's unbelievably strong ... you should get in right here. ... CVS remains one of my favorite stocks in this environment.'), Hewlett-Packard (HPQ): 'That was a monster-good quarter. That was an All-Aboard quarter. ... That company is smoking. ... It's not done. I wanna own Hewlett-Packard ... and so should you.' Monster Worldwide (MNST): 'I thought that the new management team would turn things around ... Monster, I still think, is being set up to be bought.' St. Jude Medical (STJ): 'If you want to be in that cohort, it's gotta be S-T-J.' Freeport-McMoran (FCX): 'I'm willing to have you in Freeport (FCX - Cramer's Take - Stockpickr - Rating), cause that's copper and gold.' Transocean (RIG): 'This is a great opportunity. ... In the last three days ... Transocean went from $138 to $127 because they did financing.' Schlumberger (SLB) Raytheon (RTN) Wolverine World Wide (WWW) Nike (NKE) Vimpel Communications (VIP) Shaw Group (SGR) Countrywide Financial (CFC): 'It's a very technical situation. ... If the Fed cuts 50 basis points, Countrywide will work.'
Bearish calls:
Sysco (SYY): 'It's OK ... as long as the consumer's out there spending ... going to a lot of restaurants ... the problem is they're not going to restaurants as much. Don'tBuy.' Boston Scientific (BSX): 'Let me be very clear. I have disliked Boston Scientific for more than 10 points.' Titanium Metals (TIE) Taser (TASR): 'In this market, it's too hard for me. ... I do not want to buy Taser here. Don'tBuy.'

Labels: BSX, CFC, CVS, FCX, HPQ, Jim Cramer, Lightning Round, Mad Money, MNST, NKE, RIG, RTN, SGR, SLB, STJ, SYY, TASR, TIE, VIP, WWW

Countrywide (CFC), Ambac (ABK), PMI (PMI), MBIA (MBI), Washington Mutual (WM), Bank of America (BAC), Wachovia (WB)
To those who dread a Fed rate cut due to inflation worries, Cramer says oil and grain prices will not be alleviated by a rise in interest rates. "The thing that would knock the market down huge is obviously they don't cut," said Cramer; " … all year people have been focused much more on inflation. It's deflation that I'm worried about."
While raising interest rates may strengthen the dollar's value, Cramer insists this is not so simple; "the dollar is highly correlated to economic growth, not to the price of money."
"I've seen whole economies raise interest rates to be able to defend their currency and fail repeatedly," he said. "Where people want to be is in a country that is controlling its own fate, tends not to have as big a trade deficit as we have and is growing, and our country is not growing, therefore you don't want the currency."
While he does not think CFC, ABK, PMI, MBI and WM can be rescued by the Fed, and those too took mortgages between 2005 and 2007 may be "wiped out" a rate cut may still save those who took mortgages in 2007.
If rates are not cut, "Armageddon is back on the agenda," added Cramer. While Countrywide is currently engaged in a battle for its survival, BAC and WB will report "quarter of quarter of losses," which will cause people to view the crisis "very differently."
Published by SeekingAlpha

Labels: ABK, BAC, CFC, Jim Cramer, MBI, PMI, Wall Street Confidential, WB, WM

Countrywide Financial Corp. said Thursday its mortgage fundings for September fell 44 percent from the same period a year ago, and the mortgage lender is now facing a potential federal investigation over the timing of stock sales by its chief executive.
Countrywide, the nation's largest mortgage lender, said total mortgage fundings last month fell to $21.2 billion from $38.1 billion a year ago.
The steep decline in volume comes as the Calabasas, Calif.-based company makes a shift to originate traditional, conforming loans instead of more risky, nontraditional loans like subprime mortgages. Countrywide previously packaged the majority of its loans as securities and sold them to investors in the secondary market.
During the past few months, rising delinquency and default rates have caused demand for these securities to all but dry up, especially subprime loans. The collapse of the secondary market, coupled with the deteriorating housing market, has led to a steep drop in mortgage origination volume nationwide.
Housing foreclosures nearly doubled last month, according to real estate information firm RealtyTrac Inc. A total of 223,538 foreclosure filings were reported in September, up from 112,210 during September 2006.
Conforming loans -- which now account for about 90 percent of Countrywide's volume -- are considered safer because government-sponsored Fannie Mae and Freddie Mac are willing to purchase them, and typically these loans are less likely to default.
Shares of Countrywide fell 52 cents, or 2.77 percent, to close at $18.28 Thursday.
Source: Stephen Bernard, AP Business Writer

Labels: CFC, FNM, FRE, Mortgages

This year's decline in existing home sales will be steeper than previously anticipated, a trade group for real estate agents predicted Wednesday.
The eighth straight downwardly revised forecast from the National Association of Realtors calls for U.S. existing home sales to be 10.8 percent below last year as housing market woes persist. Sales of new homes, meanwhile, are expected to finish 2007 at the lowest level in a decade.
The trade group's outlook for 2007 homes sales has grown more pessimistic through the year as foreclosures soared, credit market troubles developed and sales fell. Back in February, the group forecast an annual decline in existing home sales of only 0.6 percent.
In its October report, the association predicts 5.78 million existing homes will be sold in 2007, down from 6.48 million last year. Last month, the association predicted an 8.6 percent drop from a year ago.
This year's sales would be the lowest since 2002, when sales hit 5.63 million.
Sale prices for existing homes are forecast to drop 1.3 percent to a median of $219,000 this year -- a slight improvement from last month's prediction of a 1.7 percent decline. The median price refers to the point where half sold for more and half for less.
Next year, the trade group expects existing home sales to climb to 6.12 million. That is 2.4 percent lower than last month's prediction.
Source: Alan Zibel, AP Business Writer

Labels: BAC, BZH, CFC, DHI, Home Sales, KBH, LEN, MDC, PHM, SPF, TOL, WB, WFC, WM

An index that forecasts near-term home sales fell in August to a record low as would-be homebuyers had difficulty getting mortgages. Economists said the housing market's woes show no sign of improving soon.
The National Association of Realtors said Tuesday its seasonally adjusted index of pending sales for existing homes fell 6.5 percent from July and 21.5 percent from a year ago.
The pending home sales index has done a farily good job of predicting sales levels over the following two months said Joshua Shapiro, chief U.S. economist with MFR Inc. in New York.
Shapiro and other analysts expect prices to fall further before home sales rebound. Developers are already making big price cuts to move unsold new homes, but existing homeowners are more reluctant to do so. "We haven't reached bottom yet," Shapiro said.
August's reading of 85.5 was below analysts' expectations and the lowest ever for the index, which started in January 2001. An index reading of 100 is equal to the average level of sales activity in 2001.
With defaults rising among borrowers with weak credit, lenders in August backed off from all but the safest mortgages.
Source: Alan Zibel, AP Business Writer

Labels: BAC, C, CFC, FMT, FNM, FRE, Home Sales, Housing Stocks, IMB, LEND, UBS, WFC, WM

Wall Street built on its gains Wednesday as investors bet that the cheaper money the Federal Reserve unleashed with its decision to cut interest rates will give a boost to corporate profits and the overall economy.
The rise in stocks for a second day appeared to reassure some investors that Tuesday's huge advance was based on reasonable optimism and amounted to more than a one-day pop. A mild reading of the Labor Department's August consumer price index, which slipped 0.1 percent, offered support for the Fed's decision to focus on the economy and set aside some of its concerns about inflation. Further, the Commerce Department's report that new home construction fell for the third month in a row in August offered fresh evidence that the housing market is still struggling.
Wall Street, focusing on the Fed's move to lower the target federal funds rate to 4.75 percent from 5.25 percent, was able to again look past a continued rise in energy prices. Oil settled at a fresh record Wednesday.
The Dow Jones industrials rose 76.17, or 0.55 percent, to 13,815.56. While the Dow finished well off its highs of the session, the gains nevertheless came a day after a jump of nearly 336 points -- its biggest one-day point gain in nearly five years.
Broader stock indicators also rose. The Standard & Poor's 500 index rose 9.25, or 0.61 percent, to 1,529.03. The Nasdaq composite index rose 14.82, or 0.56 percent, to 2,666.48.
Source: Tim Paradis, AP Business Writer

Labels: CFC, Crude Oil, Dow Jones, Federal Reserve, MS, Nasdaq, Oil Futures

Buy Lehman Brothers (LEH), Jim Cramer said Wednesday on CNBC's Stop Trading! segment.
Cramer said the firing of 1,200 workers at the broker's BNC mortgage unit is good because they weren't making the company any money anyway.
Cramer said additional firings will be good at other struggling mortgage players like Countrywide (CFC), which he said will also benefit from reduced competition from marginal players going bust.
Published by thestreet.com

Labels: CFC, Jim Cramer, LEH, Stop Trading

Playing it Safe with Procter & Gamble (NYSE: PG - News)
As interest rates go lower, dividends will rise in value, and Cramer recommends PG as a "money in the bank" dividend stock. While at first glance, few would be impressed by a $64 stock with a 2.2% yield, Cramer reminded viewers that PG was at $30 in 2000. Reinvesting PG's dividend is like having "compound interest" said Cramer and he lauds PG for its "mega buyback." He predicts PG will reach $90 and is a good way to "Fed-proof your portfolio."
How Much is that PetSmart in the Window? VCA Antech (NasdaqGS: WOOF - News), PetMed Express (NasdaqGS: PETS - News) and PetSmart (NasdaqGS: PETM - News)
The heated discussion over NFL star quarterback Michael Vick's upcoming trial shows "people won't stand for cruelty to animals," said Cramer who unveiled some of his pet picks and peeves. One pet peeve was WOOF's "piled-up debt," but he liked discount pet pharmacist PETS for its personalized care. However, his best pet pick was PETM, which is up $3 from where he recommended it in January. PETM is known for selling "high-class premium" items and has $245 million cash on hand. PETM will remain the victor as its main rival, Petco, will probably close stores after being taken over by a "debt-ridden" company.

Everybody out of the Poole: Bear Stearns (NYSE: BSC - News), Countrywide Financial (NYSE: CFC - News), Goldman Sachs (NYSE: GS - News)
Cramer defended his vigorous criticism of St. Louis Federal Reserve President William Poole, who said interest rates should be raised, not lowered. Cramer accused Poole of "single-handedly attempting to destroy" the market and said he should put in his resignation. Senator Kent Conrad (D, N.D), chairman of the Budget Committee, was Cramer's guest caller and said Poole's proposal was "reckless and irresponsible" and would cause a calamity. He added difficulties at BSC, CFC and GS speak for themselves. Conrad added Poole' s statements showed a "lack of confidence" in the market, and Cramer concluded the segment with his hope that " people on Wall Street are as considerate as those in the Senate."
Mad Mail: Altria (NYSE: MO - News), Melco PBL Entertainment (NasdaqGM: MPEL - News), Las Vegas Sands (NYSE: LVS - News) and Wynn Resorts (NasdaqGS: WYNN - News)
Cramer says there is "good news coming" at Altria with a rise of 5 points to the 70s but not the 80s, since it is a stock "everybody already owns" and has limited upside. Atlhough he liked the IPO, Cramer says MPEL is now worst of breed and prefers LVS or WYNN.
Published By SeekingAlpha

Labels: BSC, CFC, GS, Jim Cramer, LVS, Mad Money, MO, MPEL, PETM, PETS, PG, WOOF, WYNN

Billionaire investor Warren Buffett may buy parts of beleaguered mortgage lender Countrywide Financial Corp (NYSE:CFC - News), some investors are speculating, according to The Wall Street Journal.
Countrywide's debt-servicing business and its portfolio of mortgages and mortgage-backed securities may be attractive to Buffett, the Journal reported on its Web site on Monday, citing unnamed investors.
Like many mortgage lenders, Countrywide has struggled with rising delinquencies and foreclosures, and an unwillingness among bankers to extend credit, and among investors to buy the loans it makes.
Countrywide, which is being closely monitored by U.S. regulators, sought to reassure investors earlier on Monday that it is safe to do business with the company.
Buffett has been increasing his stake in financial services companies, including those with significant exposure to the mortgage market.
Earlier this month, Buffett's investment company Berkshire Hathaway Inc (NYSE:BRK-A - News; NYSE:BRK-B - News) disclosed an investment in Bank of America Corp (NYSE:BAC - News), one of the six largest U.S. mortgage lenders, in a regulatory filing.
Berkshire is also a long-time shareholder in Wells Fargo & Co (NYSE:WFC - News), the second largest U.S. mortgage lender after Countrywide.
Wells Fargo has largely been spared the subprime mortgage-related woes afflicting smaller rivals, helped by its conservative underwriting standards.
Buffett told TV network CNBC last week that the worsening credit and housing markets may present some "real" investment opportunities.
Berkshire officials were not immediately available for comment. Buffett does not discuss what Berkshire is presently buying and selling.

Published by Reuters

Labels: BAC, BRK-A, BRK-B, CFC, Warren Buffett, WFC

Fannie Mae (NYSE: FNM - News): Cramer would stay off the Fannie Mae bandwagon, since the Bush administration and the FNM's top regulator, James Lockhart of the Office of Federal Housing Enterprise Oversight, have a "chokehold" on the company's mortgage portfolio. Cramer would not make a move unless this changes.
Countrywide (NYSE: CFC - News): Cramer says he needs to see evidence to back up the bank's bullish comments.
Lamar (NasdaqGS: LAMR - News), Celgene (NasdaqGS: CELG - News) and PDL BioPharma (NasdaqGS: PDLI - News): Lamar's video billboards may be too "eye-catching" and may be limited due to safety regulations. He is not sure about CELG, because it should be working but isn't. He sees PDLI as a possible takeover target after the departure of CEO Mark McDade.

Published by SeekingAlpha

Labels: CELG, CFC, FNM, Jim Cramer, LAMR, PDLI, Stop Trading

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Kensey Nash (NasdaqGS:KNSY - News) should report $0.09 EPS on Monday before the market opens. KNSY's PowerRating (for Traders) is 4.
Lowe's (NYSE:LOW - News) is expected to announce $0.61 EPS on Monday morning before the bell. LOW's PowerRating (for Traders) is 4.
Analysts are watching for Solarfun Power Holdings (NasdaqGM:SOLF - News) to report $0.04 EPS before the market opens on Monday. SOLF's does not have a PowerRating (for Traders) due to a short trading history.
Oplink Communications (NasdaqGM:OPLK - News) and Perry Ellis (NasdaqGS:PERY - News) both announce earnings after the close on Monday, so watch for heightened price action and volatility ahead of the close. OPLK's PowerRating (for Traders) is 4, and PERY's PowerRating (for Traders) is 4.
Countrywide Financial (NYSE:CFC - News) gained over 11% on Friday, after Banc of America gave the company a ratings upgrade, from Sell to Neutral. CFC's PowerRating (for Traders) is 6.
Nordstrom (NYSE:JWN - News) announced better than expected profit on Thursday, but said results were slightly lower due to the company's credit-card business. JWN's PowerRating (for Traders) is 4.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: CFC, Hot Stocks, JWN, KNSY, LOW, OPLK, PERY, SOLF

Wells Fargo (NYSE: WFC - News), Countrywide Financial's (NYSE: CFC - News), Washington Mutual (NYSE: WM - News), Bank of America (NYSE: BAC - News), Wachovia (NYSE: WB - News)
Thursday's dash for financials may indicate the sector will be one of the "long-term beneficiaries" of Bernanke's position, but Cramer does not think they are safe. He tacked a double sell on WM but thought BAC and WB could survive. However, he reserved the lion's share of his praise for WFC, and said, "It is the great speculative play that should prosper." He believes WFC will "own the mortgage market" and will win with investors because it offers a great dividend. Cramer would wait for WFC to drop to the $32 - $34 range.
Sell Block: VMware (NYSE: VMW - News), H&R Block (NYSE: HRB - News), Capital One Financial (NYSE: COF - News), Friedman Billings Ramsey Group (NYSE: FBR - News) Lamson & Sessions (NYSE: LMS - News), Six Flags (NYSE: SIX - News)
Cramer urged investors to "stay the course" and added "no one ever made a dime panicking." However, he added it isn't too late to sell minerals and he feels tigher consumer spending will put pressure on retail. Cramer would sell VMW after its highly successful IPO, and would stay away from HRB, COF and FBR. He would also sell LMS as well as SIX because of low attendance due to the weather. He concluded it is better to invest in long-term stocks rather than quick trades in the current environment.
KKR Financial (NYSE: KFN - News), Thornburg Mortgage (NYSE: TMA - News) and Reynolds American (NYSE: RAI - News)
Not all high dividends are good dividends, Cramer declared and used KFN and TMA as examples. He added high-dividend names KFN and TMA aren't worth the investment because as their stocks fall so will the yields. Cramer likes RAI which has a dividend of 5.5% and is a "smart play" in this environment because "nothing is more defensive than cigarettes."
Mad Mail: Bear Stearns (NYSE: BSC - News), Jones Soda (NasdaqCM: JSDA) and Google (NasdaqGS: GOOG - News)
Cramer would avoid BSC and JSDA whose climb was "how to make a million" in the market. He adds GOOG is safe and likes the tech sector for its pristine balance sheets and great products.
Published by SeekingAlpha

Labels: BAC, BSC, CFC, COF, FBR, GOOG, HRB, Jim Cramer, KFN, LMS, Mad Money, RAI, SIX, TMA, WB, WFC, WM, WMV

Countrywide Financial (NYSE: CFC - News) and Annaly Mortgage (NYSE: NLY - News): Cramer urged investors against selling CFC because he thinks the company will survive the credit crunch. He would not buy the common stock and would purchase calls instead. Cramer is against shorting NLY, since CEO Mike Farrell is "money in the bank."

Labels: CFC, Jim Cramer, NLY, Stop Trading

Cramer On Donald Trump: ' Donald Trump is not a guy who idly says look, it could all flip... He's got a huge amount invested in it. And I just thought that the interview was one of those interviews where you just said, did Donald Trump just say that the greatest market for real estate in the country could slip? Yes. And did he just say that this is the largest business and that we would get a recession if they don't fix it?Yes. He is a smart guy who is saying Bernanke, look. It is time to focus on it ... he doesn't ever want the government to help him. He's always been the guy who says, listen, the government can't do the job ... The truth is, he sees the larger picture and knows that the little guy's going to be out... I just thought it was a really great interview...'
Thornburg Mortgage Inc. (NYSE: TMA - News) and Countrywide Financial (NYSE: CFC - News): Cramer attributed the rise in the financial sector to a short squeeze which could also spread to mortgage companies. He said even if there were a hundred year storm in housing, TMA and CFC would be survivors, because they lend money to wealthy people who want mortgages for tax breaks rather than out of necessity. Concerning TMA, Cramer added, "Shorts have bet against this company before, and they've been taken to the one-hour Martinizing cleaners. It will happen again."
Published by SeekingAlpha

Labels: CFC, Jim Cramer, Stop Trading, TMA

Cramer's Index: MGIC Investment (NYSE: MTG - News), Countrywide Financial (NYSE: CFC - News), Bear Stearns (NYSE: BSC - News), KB Home (NYSE: KBH - News), Centex (NYSE: CTX - News), MBIA (NYSE: MBI - News), Blackstone (NYSE: BX - News), Thornburg Mortgage (NYSE: TMA - News), Beazer Homes (NYSE: BZH - News), Washington Mutual (NYSE: WM - News), Goldman Sachs (NYSE: GS - News), Citigroup (NYSE: C - News)
While Cramer says he doesn't want to be a "buzz kill," he admits it is not possible to be really bullish as long as the housing crisis persists. Cramer formed his own "index" of the above-mentioned stocks, and said when the 12 companies stablilize and the Fed cuts interest rates, it will be time to let the bulls run once again. He made a personal appeal to Fed chairman Ben Bernanke; "Cut the rates. Take the pressure off. Many, many people could be about to lose their homes, because you're not listening..."
New Age Under Armour: Lululemon Athletica (LULU)
Cramer has discovered a new Under Armour, which like its predecessor, has experienced a massive initial bounce and is expected to keep growing. Yoga apparel company, LULU came public at $18 and jumped to $31 "in one of the worst tapes I've ever seen," said Cramer. However, he doesn't think this stock is a "one trick pony" but will keep going up as UA did, because LULU has been doubling stores year over year. Since the stock is speculative and has risen, Cramer recommends waiting at least 3 days or until the price drops before buying.
Beer is Near: Boston Beer (NYSE: SAM - News)
While in the current climate, investors are dubious of even some soft goods stocks, "People drink beer no matter what." Cramer likes SAM's 13% long-term growth rate and its smart move of acquiring a brewery from Diageo for $55 million rather than building a new one, which would have cost $200 million. Although he's a self-proclaimed "Bud man" Cramer gives SAM a triple buy, even near its 52-week high.
CFO Interview: Stephen Chazen, Occidental Petroleum (NYSE: OXY - News)
Chazen discussed production increases in Argentina and Peru; "California continues to be good for us." he added. Chazen dismissed worries about political risks, noting there are always political risks, and he remarked on the stability of OXY's chemical business. "All oil stocks are trading down in unison," Cramer said, and added now is the time to buy oil.
Published by SeekingAlpha

Labels: BSC, BX, BZH, C, CFC, CTX, GS, Jim Cramer, KBH, LULU, Mad Money, MBI, MTG, OXY, SAM, TMA, WM

Home is Where the Debt Is: Centex (NYSE: CTX - News), Lennar (NYSE: LEN - News), Beazer (NYSE: BZH - News), KB Home (NYSE: KBH - News), Countrywide Financial (NYSE: CFC - News), Annaly Capital Management (NYSE: NLY - News)
It isn't just about sub-prime anymore; "All mortgages that were written between 2005 and 2007 I think are corrupted," said Cramer. He came to this conclusion after reading conference calls of CTX, LEN BZH and KBH. However, he zeroed in on two conference calls which are required reading: CFC's and NLY's. In CFC's "long and tedious" call is the implication there is no such thing as sub-prime because all mortgages are bad due to piggybacking equity loans and rising rates. CEO Angelo Mozilo said he doesn't predict a recovery until 2009. NLY's CEO, Michael Farrell, made "some incredible allusions to Moscow and Napoleon." While the situation is bad, Cramer says it is not as dire as it was in 1990 and 1991 when "almost every major money center bank was insolvent, and most of the big regionals either went under or were so impaired that they had to do shotgun marriages." After reading these calls, Cramer arrives at the grim conclusion that anyone involved with mortgages "could be wiped out in this environment."

Published by SeekingAlpha

Labels: BZH, CFC, CTX, Jim Cramer, KBH, LEN, NLY, Wall Street Confidential

Beazer (NYSE: BZH - News), Thornburg Mortgage (NYSE: TMA - News), Citigroup (NYSE: C - News), Countrywide (NYSE: CFC - News): Cramer says the major selloff in housing is not a reason to buy, and even if TMA is getting hammered more than it deserves, "who needs it?" Cramer might consider buying financials CFC and C if the Fed lowers interest rates, but given Ben Bernanke's inflation obsession, he wouldn't take the risk just yet.
MasterCard (NYSE: MA - News) and Macquarie Infrastructure (NYSE: MIC - News): Cramer was not so excited about buying MA now that it is $140 and has run, although he thinks the 11% selloff was "overdone." Cramer wouldn't touch MIC, a play on termite growth, because it is a "black box .... who knows what they have?"

Labels: BZH, CFC, Jim Cramer, MA, MIC, Stop Trading, TMA

American Home Mortgage (NYSE: AHM - News), Countrywide Financial (NYSE: CFC - News), Thornburg Mortgage (NYSE: TMA - News), Redwoods Trust (NYSE: RWT - News), Rait Financial Trust (NYSE: RAS - News) and NovaStar Financial (NYSE: NFI - News)
After the demise of AHM, Cramer would not recommend subprime mortgage lending companies, but he predicts CFC will survive as well as TMA, which "did a lot of loaning only to rich people." He sees hope for RWT because it is under 10%, and he warned any stock in the sector with a yield over 10% is not going to make it. RAS and NFI, which did a 4 -for-1 reverse split, are entirely at the mercy of the banks, and are therefore "totally uninvestible" because the Wells Fargos "have no interest in keeping you alive," Cramer commented. "They'd rather just take the loss." While admitting this inspires "tremendous panic" Cramer feels like sticking his neck out, because "It's first man out lives and I want our people to be first man out."
Published by SeekingAlpha

Labels: AHM, CFC, Jim Cramer, NFI, RAS, RWT, TMA, Wall Street Confidential

Wall Street appeared poised for a rebound on Wednesday after strong quarterly earnings from Amazon.com Inc. and Boeing Co. helped offset fears about the slumping mortgage industry's impact on the overall economy.
The move higher would follow Wall Street's tumble on that took the Dow Jones industrials down more than 200 points. Investors were rattled by disappointing earnings and renewed concerns about the mortgage lending market.
Investors will get a better glimpse of the economy later Wednesday when the National Association of Realtors reports on existing home sales for June. The market anticipates that 5.85 million homes were resold in June, down from 5.99 million in May, according to the median estimate of economists surveyed as of Friday by Thomson Financial.
The report follows data that showed mortgage applications fell for the first time in four weeks, hitting a five-month low as demand wanes. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ended July 20 fell 3.6 percent to 609.0 -- the lowest level since the week ended Feb. 16.
The market's drop on Tuesday was in part pinned on Countrywide Financial Corp., which missed analysts' expectations for second-quarter profit. The Calabasas, Calif.-based company also warned the struggling industry will grow even worse this year.
Dow futures expiring in September rose 64, or 0.46 percent, to 13,877 ahead of Wednesday's open, while Standard & Poor's 500 index futures rose 6.30, or 0.41 percent, to 1,528.80. Nasdaq 100 index futures rose 8.50, or 0.42 percent, to 2,034.00.

Labels: AMZN, BA, CFC

Stocks Hurt On Subprime Woes
1 The NYSE composite sank 2.1%, the S&P 500 2%, the Nasdaq 1.9% and the Dow 1.6% in heavy volume as several market leaders came under pressure. Countrywide Fin'l missed profit views and slashed targets, as delinquencies spread beyond subprimes. Home builders and lenders were among the worst hit. The 10-year Treasury yield fell 4 basis points to 4.92%.
Amazon Soars On Strong Growth
2 The e-commerce giant's Q2 profit shot up 280% to 19 cents a share, 3 cents over views. Sales grew 35% -- the best in more than 3 years -- to $2.89 bil. Amazon (NasdaqGS:AMZN - News) said it got 2.2 mil orders for the final Harry Potter book. It sees Q3 revenue of $3 bil-$3.175 bil vs. views for $3 bil. Amazon shares surged 18% in late trading to record highs after falling 3.5% ahead of results.
AT&T Tops Views; iPhone Soft?
3 The telecom giant's Q2 profit rose 21% to 70 cents a share ex items, beating views by 3 cents. Revenue was $29.5 bil, or $29.8 bil adjusted. AT&T (NYSE:T -